Which of the Following Is Correct Regarding a Two-For-One Stock

question 66

Multiple Choice

Which of the following is correct regarding a two-for-one stock split?

• A) The purpose of the split may be to increase the number of potential stockholders.
• B) The purpose of the split is to make a distribution to the stockholders.
• C) After the split,each stockholder will have greater ownership interest in the corporation.
• D) The value of each share of stock will increase as a result of the split.

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Definitions:

Merit Pay Plans

Compensation strategies that award pay increases or bonuses to employees based on their performance or achievements.

Scanlon Plan

A type of gain-sharing program that incentivizes employees to improve productivity through teamwork and suggestions, sharing the resultant cost savings among employees and management.

White-Collar Jobs

Positions in a professional setting typically requiring a high level of education and involving sedentary work, often in an office.

Bonus Pay

Additional financial compensation awarded to employees for achieving specific targets or performing beyond normal job requirements.